Cotiviti Holdings, a health IT vendor that specializes in analyzing healthcare payments for accuracy, has slapped down $70 million for healthcare analytics business RowdMap based in Louisville. The acquisition is intended to diversify the company’s analytics tools.

Doug Williams, Cotiviti CEO, noted in a news release that the need for its services has increased in line with the shift toward value-based care and the more complex payment system that accompanies it. RowdMap will help the companies expand and deepen their product offerings to their customer base.

“With the addition of RowdMap, we will be able to offer adjacent solutions to payment accuracy that together target over $600 billion of the estimated $900+ billion in waste and abuse in healthcare expenditures,” Williams said.

RowdMap uses publicly available healthcare data to create risk benchmarks for physicians, health plans, and hospital systems to help them identify and quantify no-value and low-value care. As a result, payers can reduce their medical costs by 30 percent and hospitals. The startup has expanded rapidly in the past couple of years from having a presence in 10 states two years ago to 49 states in 2017. It also added Geisinger Health System as a customer earlier this year.

“You can have a great clinical outcome on surgery you don’t need. You can even have a low cost and a great patient experience on that surgery,” he said. “But we take a broader view of quality. Whether you need something or not actually trumps whether you have a good outcome.”

Both companies are all about providing analytics software support to make risk bearing, value-based care workable because it relies so much on data analytics.

Cotiviti is a public company based in Atlanta that provides its services to 20 of the largest payers in the U.S. and eight of the top ten retailers, according to a news release. Earlier this year Rosenthal said RowdMap planned to focus more on helping payers compensate providers on the basis of high-value care metrics.

“We believe we are well positioned to help RowdMap achieve its full potential by leveraging our broad data set and established client relationships,” Williams said. “In addition, the RowdMap technology platform and analytics are highly complementary with Cotiviti’s, creating an opportunity for our teams to collaborate and share mutual insights to enhance existing solutions and develop a new set of innovative solutions.”